German property returns at record high level - MSCI

Returns on German property investments surged to their highest level on record in 2014, according to MSCI’s latest IPD annual property index.

The total index figure recorded a 6.0% return, up from 5.2% in 2013 and well above the 15-year average of 3.7%.

Industrial was the strongest performing sector, on 12.2%, while residential (7.9%) and retail (7.2%) also outperformed the index, with only office properties underperforming at 4.2%.

The returns were boosted by a return to positive capital value growth figures for the first time since 2001, with the industrial sector again leading the way.

MSCI has been compiling annual IPD figures since 1995. The German index is based on the performance of 2,235 property investments with a total capital value of €52.1 bn at December 2014.